A pattern repeats in our practice: a serious injury, a clearly at-fault driver, and a minimal policy that won't begin to cover the harm. What happens next depends almost entirely on a coverage decision the victim made years earlier — usually without thinking about it.
The Math Problem Nobody Mentions at Renewal Time
California's minimum liability limits are low — and a meaningful share of drivers carry exactly that, or nothing at all. A single night in a hospital can exceed a minimum policy. A surgery certainly will. When the at-fault driver's coverage runs out, the difference comes from one of three places: the driver personally (usually uncollectible), nowhere, or your own uninsured/underinsured motorist coverage.
How UM/UIM Actually Works
- UM steps in when the at-fault driver has no insurance or it's a qualifying hit-and-run.
- UIM steps in when their limits are smaller than yours — you generally recover the difference between your UIM limit and what their carrier paid.
- It follows you. In most policies, UM/UIM protects you in someone else's car, on a bicycle, or on foot. Two of our most significant recent recoveries were UIM claims for clients struck while cycling.
- It's not optional by accident. California insurers must offer UM/UIM; declining or reducing it requires a signed waiver. Many people signed one at a kitchen table years ago and don't remember.
The Mistakes That Forfeit the Coverage
- Settling with the at-fault carrier without your insurer's written consent. The consent requirement protects your carrier's reimbursement rights — skip it and the UIM claim can die.
- Treating your own carrier like a friend. In a UM/UIM claim, your insurer evaluates and negotiates like any defendant. Expect lowball offers, document everything, and remember disputes go to arbitration — a forum with its own strategy.
- Settling too early. UIM claims reward patience: updated imaging, surgical recommendations, and lost-earning-capacity evidence developed months in have moved carriers by six figures in our cases.
What Should You Carry?
We can't give individualized insurance advice in a blog post — but we can report what we see: clients with 100/300 UM/UIM or better are consistently the ones whose serious injuries get meaningfully compensated when the other driver carries the minimum. The premium difference is usually modest; ask your agent. Check your declarations page today — the line says "Uninsured/Underinsured Motorist Bodily Injury."
Hit by a Driver With Minimal Coverage?
Before you accept anyone's policy limits, get advice — sequencing decides whether your UIM coverage survives. How we handle UM/UIM claims, or request a free case review.
This article is general information about California law, not legal advice about your specific situation.